Suppose the price of a Snickers candy bar is $2.00 at both the airport and the grocery store. The price elasticity of demand for a Snickers candy bar at an airport is likely to be ________ the price elasticity of demand for a Snickers candy bar at the grocery store.
A)less than
B)equal to
C)greater than
D)the reciprocal of

Question

Quizplus · Accepted Answer

Fewer substitutes at the airport will cause demand to be less price elastic than it is at a grocery store, where there are likely more options.

Suppose the Price of a Snickers Candy Bar Is $2